BILL REQ. #: H-4854.2
| State of Washington | 58th Legislature | 2004 Regular Session |
READ FIRST TIME 02/06/04.
AN ACT Relating to renewable energy and energy efficiency; and adding a new chapter to Title 19 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature finds that each electric
utility has the responsibility to meet the electricity demands of its
customers with the lowest reasonable cost mix of generating resources
and improvements in the efficient use of electricity. The legislature
further finds that integrated resource planning provides a sound method
for utilities to ensure that they can serve their customers' current
and future needs, and can lead to significant development of renewable
energy and energy efficiency.
NEW SECTION. Sec. 2 The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1) "Commission" means the Washington state utilities and
transportation commission.
(2) "Consumer-owned utility" includes a municipal electric utility
formed under Title 35 RCW, a public utility district formed under Title
54 RCW, an irrigation district formed under chapter 87.03 RCW, a
cooperative formed under chapter 23.86 RCW, or a mutual corporation or
association formed under chapter 24.06 RCW, that is engaged in the
business of distributing electricity to one or more retail electric
customers in the state.
(3) "Department" means the department of community, trade, and
economic development.
(4) "Electric utility" means a consumer-owned or investor-owned
utility.
(5) "Integrated resource plan" or "plan" means a plan describing
the mix of generating resources and improvements in the efficient use
of electricity that will meet current and future needs at the lowest
reasonable cost to the utility and its ratepayers.
(6) "Investor-owned utility" means a company owned by investors
that meets the definition in RCW 80.04.010 and is engaged in
distributing electricity to more than one retail electric customer in
the state.
(7) "Full-requirements customer" means a utility that generates no
power and relies on the Bonneville power administration for all of the
power needed to supply its total load requirement.
NEW SECTION. Sec. 3 Each electric utility must develop an
integrated resource plan consistent with the provisions of this
chapter. The plan shall be prepared on a biennial basis and, at a
minimum, must include:
(1) A range of forecasts of future customer demand using methods
that examine the effect of economic forces on the consumption of
electricity and that address changes in the number, type, and
efficiency of electrical end-uses;
(2) An assessment of technically feasible improvements in the
efficient use of electricity, including load management and fuel
switching, as well as currently employed and new policies and programs
needed to obtain the efficiency improvements;
(3) An assessment of technically feasible generating technologies
including but not limited to renewable resources, cogeneration, power
purchases, and thermal resources;
(4) An evaluation comparing the cost-effectiveness of generating
resources with the cost-effectiveness of improvements in the efficient
use of electricity;
(5) The integration of the demand forecasts and resource
evaluations into a long-range integrated resource plan describing the
mix of resources and efficiency measures that will meet current and
future needs at the lowest reasonable cost to the utility and its
ratepayers;
(6) A short-term plan outlining the specific actions to be taken by
the utility consistent with the long-range integrated resource plan;
and
(7) For all plans subsequent to the initial integrated resource
plan, a progress report that relates the new plan to the previously
filed plan.
NEW SECTION. Sec. 4 (1) Investor-owned utilities shall submit
integrated-resource plans to the commission. The commission shall
establish by rule the requirements for preparation and submission of
integrated resource plans.
(2) The commission may adopt additional rules as necessary to
clarify the requirements of section 3 of this act as they apply to
investor-owned utilities.
NEW SECTION. Sec. 5 (1) Each consumer-owned utility shall
develop and publish a work plan for the preparation of an integrated
resource plan. The work plan shall set forth the proposed content of
the integrated resource plan, the proposed schedule of preparation, and
provisions for public involvement in the preparation and review of the
plan. The governing body of each utility shall approve an integrated
resource plan only after it has provided public notice and hearing on
the proposed plan. Each consumer-owned utility shall publish final
integrated resource plans either as part of an annual report or as a
separate document available to the public.
(2) Each consumer-owned utility shall transmit a copy of its
integrated-resource plans to the department by July 31, 2006, and
transmit subsequent plans every two years thereafter.
(3) Consumer-owned utilities that are full-requirements customers
of the Bonneville power administration are exempted from the
requirements of this chapter.
NEW SECTION. Sec. 6 Every two years as part of its biennial
report required under RCW 43.21F.045, the department shall review the
integrated resource plans of consumer-owned utilities and prepare a
report to the legislature assessing the utilities' conformance with
this chapter. The report shall include a statewide summary of utility
load forecasts, load/resource balance, and utility plans for the
development of thermal generation, renewable resources, and efficiency
resources. The commission shall provide the department with data
summarizing activities of investor-owned utilities for use in the
department's statewide summary.
NEW SECTION. Sec. 7 Sections 1 through 6 of this act constitute
a new chapter in Title